While EssilorLuxottica has a much larger market capitalization than Warby Parker, the smaller company says it can grow “faster than the overall industry.”
Co-founder Dave Gilboa said it is now becoming a"holistic vision care" company, rather than solely a glasses-maker.
Gilboa said the firm could grow faster than the rest of the industry, but it is dwarfed by incumbent EssilorLuxottica, with a market cap of around $87 billion.The firm has been credited with being a leader in direct-to-consumer, a model where businesses cut out middlemen to sell via their own stores, and it has arguably been an inspiration to other companies such as luggage-maker Away and sneaker brand Allbirds.
Warby Parker made its name by selling glasses online and undercutting incumbents such as Ray-Ban makerHaving debuted on the stock market via a direct listing on Sept. 29, and seeing itsthat day, Warby Parker is now embarking on the next leg of its journey: it is shifting toward selling services as well as glasses, co-founder and CEO Dave Gilboa told CNBC in a phone interview.
"We're at this kind of interesting transition where historically we've been a glasses company and eyeglasses brand and now, we're transitioning to becoming a holistic vision care company," Gilboa said."Where, in addition to buying glasses from us ... Now, an increasing number of our customers are also getting their eye exam and prescriptions from us," he added.
Warby Parker's customers spent an average of $218 each in 2020, up from $188 in 2018, and it expects growth to come from people who buy progressive — or multifocal — lenses, eye exams and contacts, per a 2021 investor presentation. The company said these"holistic vision customers" have the potential to spend $500 and up a year after their initial purchase, more than double the amount for a glasses-only shopper.